TaxTMI 
TaxTMI 
2008 (8) TMI 236
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....edit amounting to Rs. 7,46,23,357/- of Excise duty, amount of Rs. 12,70,929.00 of Education Cess taken during the period May, 2004 to June, 2005 shall be treated as non est and to be reversed from the Cenvat account and also imposed a penalty of Rs. One lakh on the appellant. The Revenue filed appeal for imposition of penalty of equal amount of duty under Section 11AC of Central Excise Act. 2. The relevant facts of the case as per record, in brief, are that the appellants were engaged in the manufacture of Menthol powder amongst others at their factory. They purchased raw material Menthol flakes from M/s. Aar Bee Industries, Jammu accompanied with Central Excise invoices showing the payment of duty of excise. The supplier of raw materials ....
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....cise is not sustainable. He relied upon the report of Dr. H.M. Chawla, Professor of IIT, Delhi, wherein it is stated that the conversion of Menthol flake into Menthol powder amounts to "manufacture". He cited several decisions of the Tribunal in support of his contention that the process undertaken by the appellant is within the definition of 'manufacture'. He also submits that it is well-settled by series of decisions of the Tribunal that the assessee paid the duty on the final product and therefore, credit cannot be denied on the inputs. 4. The learned SDR on behalf of the Revenue reiterates the findings of the Commissioner of Central Excise. He submits that the Commissioner of Central Excise in the impugned order elaborately discussed t....
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.... Rule 16 of Cenvat Credit Rules, 2004. 6. On the other hand, that the appellant strongly relied upon the report of Dr. H.M. Chawla, Professor, IIT Delhi to prove that conversion of Menthol flakes into Menthol powder amounts to "manufacture". They have also relied upon various decisions of the Tribunal on this issue. We find that the appellants exported Menthol powder and filed rebate claims under Rule 18 of Central Excise Rules, 2002 which was sanctioned by the Deputy/Assistant Commissioner of Central Excise. The Revenue filed the appeal before the Commissioner (Appeals), which was rejected. Further, the Revenue filed appeal before the Revision authority, which was rejected vide order No. 1109/06, dated 27-12-06. The issue before the revis....
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....sential and necessary to dwell into nuances of the "manufacture aspect" as pleaded in detail by both the appellants and respondents and there seems to be no infirmity in the order of Commissioner (Appeals) in confirming the Order-in-Originals and rejecting the Appeal.' 7. Rule 18 of Central Excise Rules, 2002 provides where any goods exported, the Central Government may, by notification, grant rebate of duty paid on such excisable goods or duty paid on materials used in the manufacture or processing of such goods. There is no dispute that, in the present case, rebate was sanctioned on the exported goods, Menthol powder. In this situation, the denial of credit on Menthol flake used in the process of Menthol powder is not justified. The Trib....